Climate Change Data

John Wood Group PLC

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:159,276 tCO2e (market-based)
Scope 1 Emissions:3,789 tCO2e
Scope 2 Emissions:16,480 tCO2e (market-based)
Total Energy Consumption:408,158 MWh
Carbon Intensity:2.20 tCO2e (gross Scope 1 & 2, market-based) / $100,000 revenue

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Fair Working Practices
  • Community Impact
  • Environmental Impact
  • Governance

Environmental Achievements

  • Reduced scope 1 and 2 carbon emissions by 8% to 159,276 tonnes CO2e (market-based) in 2020 from 173,585 tonnes CO2e in 2019. Committed to reduce scope 1 and 2 carbon emissions by 40% by 2030.
  • One of the world’s largest CO2 flare reduction projects saving 4 million tonnes of CO2 emissions per year (equivalent decarbonisation benefit of over 850 wind turbines).

Social Achievements

  • Launched three new employee engagement toolkits in 2020: a leadership channel, a “We Belong” blog campaign, and a new Wood News site.
  • Improved gender balance in senior leadership roles to 31% in 2020 (from 30% in 2019).
  • Initiated strategic partnerships and relationships with charities supporting the Global Cause (quality education).

Governance Achievements

  • Enhanced ESG disclosure in results announcements, presentations, and website.
  • Retained AA Leader rating from MSCI for a sixth consecutive year.
  • Extended revolving credit facility to May 2023.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions
Medium-term Goals:
  • Reduce Wood’s scope 1 and 2 emissions by 40% by 2030.
  • Improve gender balance with 40% female representation in senior leadership roles by 2030.
  • 100% of Wood labour suppliers sign up and comply with the Building Responsibly Principles by 2025.
  • 100% of our suppliers have Building Responsibly Principles embedded into their supply chains by 2030.
Short-term Goals:
  • Ensure all Wood offices are single use plastic free by 2025

Environmental Challenges

  • Covid-19 pandemic and oil price volatility impacting activity levels and earnings.
  • Cost overruns and delays on a small portfolio of Process and Energy projects in Americas.
  • Two fatalities in 2020.
Mitigation Strategies
  • Decisive actions to reduce cost, protect the balance sheet, and generate strong cashflow (overhead savings of c$230m).
  • Voluntary salary reductions by Board, executive directors, and senior leaders.
  • Withdrawal of dividend payments.
  • Portfolio optimisation strategy.
  • Comprehensive return-to-the-workplace planning.
  • Programmes to promote mental health and wellbeing.

Supply Chain Management

Responsible Procurement
  • Building Responsibly Principles

Climate-Related Risks & Opportunities

Opportunities
  • Energy transition
  • Sustainable infrastructure

Reporting Standards

Frameworks Used: TCFD, CDP, MSCI ESG Ratings, UN Sustainable Development Goals

Certifications: ISO 14001:2015, ISO 45001

Third-party Assurance: Lloyds Register (ISO 14001:2015), KPMG (Financial Statements)

UN Sustainable Development Goals

  • Goal 4 (Quality Education)

Community investment program focused on quality education.

Sustainable Products & Innovation

  • ENVision (environmental monitoring solution)
  • Decarbonisation SCORE (methodology for emissions reduction targets)

Awards & Recognition

  • AA Leader rating from MSCI

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:75,629 tCO2e (2020-21)
Scope 1 Emissions:3,745 tCO2e (2020-21)
Scope 2 Emissions:28,962 tCO2e (2020-21)
Scope 3 Emissions:1,524,919 tCO2e (2020-21)
Renewable Energy Share:45%
Total Energy Consumption:345,537 MWh (2020-21)
Carbon Intensity:2.70 tCO2e (gross Scope 1 & 2, location-based) / $100,000 revenue (2020-21)

ESG Focus Areas

  • Climate change
  • Diversity & Inclusion
  • Fair working practices
  • Community investment
  • Environmental impact

Environmental Achievements

  • 31% reduction in scope 1 and 2 emissions (target 40% reduction by 2030 on a 2019 baseline)
  • Around 45% of electricity used is now from certified renewable energy sources

Social Achievements

  • Increased female representation in senior leadership roles to 33% (2020: 31%), targeting 40% by 2030
  • Contributed over $1 million in time and resources to charitable causes

Governance Achievements

  • ESG targets embedded in the 2021 annual bonus and long-term incentive plans for executive directors
  • Successful application for a $600m five-year term loan from a group of six banks, 80% guaranteed by UK Export Finance (UKEF)

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions
Medium-term Goals:
  • Reduce Wood’s scope 1 and 2 carbon emissions by 40% by 2030
  • 40% female representation in senior leadership roles by 2030
  • Contribute $10 million to Global Cause by 2030
Short-term Goals:
  • All Wood offices single-use plastic free by 2025
  • 100% of Wood labour suppliers sign up and comply with Building Responsibly Principles by 2025

Environmental Challenges

  • Ongoing pressures of the pandemic
  • Mixed market conditions
  • Continued challenges in Projects business
  • Aegis Poland contract losses ($99 million write-down)
  • High net debt ($1.4 billion)
Mitigation Strategies
  • Cost efficiencies and improved business execution
  • Future Fit programme (around $40 million cost savings)
  • De-risking contract portfolio
  • Proposed sale of built environment business
  • Securing funding through UKEF scheme and sustainability-linked RCF

Supply Chain Management

Responsible Procurement
  • Building Responsibly Principles
  • Supplier Code of Conduct
  • Modern slavery guidance

Climate-Related Risks & Opportunities

Physical Risks
  • Abnormal temperatures and weather
Transition Risks
  • Energy transition market risks
  • Failure to meet carbon targets
Opportunities
  • Increased client scope for decarbonisation services
  • Access to competitive lending rates

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001:2015

Third-party Assurance: Carbon Intelligence (for emissions), KPMG LLP (for financial statements)

UN Sustainable Development Goals

  • SDG 4 (Quality Education)

Global Cause focused on quality education

Sustainable Products & Innovation

  • Hydrothermal plastic recycling technology partnership

Awards & Recognition

  • AA Leader rating from MSCI for seventh consecutive year

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:38049 (Scope 1) + 38504 (Scope 2 location based) + 2251056 (Scope 3) = 2328009 tCO2e/year
Scope 1 Emissions:38,049 tCO2e/year
Scope 2 Emissions:38,504 tCO2e/year
Scope 3 Emissions:2,251,056 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:289,639 MWh/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Safety, Security, Health and Wellbeing of People
  • Human Rights, Equality and Inclusion
  • Community Investment
  • Environmental Sustainability
  • Resource Consumption and Circular Economy
  • Ethical Business Practices
  • Sustainable Innovation
  • Sustainable Growth
  • Supply Chain Sustainability

Environmental Achievements

  • Reduced Scope 1 and 2 carbon emissions by 65% from a 2019 baseline of 173,585 tonnes CO2e (towards a 40% reduction target by 2030).

Social Achievements

  • Increased leadership engagement events from 1,552 in 2021 to 3,289 in 2022.
  • Achieved a 6% improvement in Total Recordable Incident Rate (TRIR) compared to the prior year.
  • Contributed $1.78 million to the Global Cause (towards a $10 million target by 2030).

Governance Achievements

  • Awarded “AA Leader” rating from MSCI for an eighth consecutive year, within the top 25% for Energy, Equipment and Services.

Climate Goals & Targets

Long-term Goals:
  • Consistently ranked in the Top Quartile ESG investment ratings within our sector group by 2025.
  • 100% of our suppliers have Building Responsibly Principles embedded into their supply chains by 2030.
Medium-term Goals:
  • Reduce Wood’s scope 1 and 2 carbon emissions by 40% by 2030.
  • Doubling client support aligned to the energy transition and more sustainable infrastructure by 2030.
  • Improve gender balance with 40% female representation in senior leadership roles by 2030.
  • Contribute $10 million to our Global Cause by 2030.
Short-term Goals:
  • Single-use plastic free by 2025
  • 100% of Wood labour suppliers sign up and comply with the Building Responsibly Principles by 2025.

Environmental Challenges

  • Supply chain disruptions
  • Data reporting methods and systems are evolving.
Mitigation Strategies
  • Developing a supply chain strategy to deliver targets.
  • Continuously developing disclosures in line with relevant standards.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Building Responsibly Principles

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • AA Leader rating from MSCI

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:145,083 tCO2e (2019 baseline)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:2.7 million tonnes CO2e (2023)
Renewable Energy Share:43% (end of 2023)
Total Energy Consumption:582,771 MWh (2021)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Energy Transition
  • Sustainable Materials
  • Circular Economy
  • Decarbonization

Environmental Achievements

  • Reduced scope 1 & 2 emissions by 71% compared to 2019 baseline (exceeding the 40% target by 2030).
  • 43% of total purchased electricity was from certified renewable sources by the end of 2023.

Social Achievements

  • Not disclosed

Governance Achievements

  • Established a Safety and Sustainability Committee to oversee sustainability matters, including climate-related risks and opportunities.
  • Incorporated ESG targets, including climate-related performance measures, into leadership team bonus schemes and long-term incentive plans.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050 or sooner.
Medium-term Goals:
  • Double client support aligned to energy transition and sustainable materials by 2030.
  • Consistently ranked in the top quartile ESG investment ratings within the sector by 2025.
Short-term Goals:
  • Reduce scope 1 and 2 carbon emissions by 40% by 2030.
  • Ensure all Wood offices are single-use plastic-free by 2025.

Environmental Challenges

  • Potential for scope 1 & 2 emissions reduction to reverse as activity levels increase.
  • Challenges in eliminating single-use plastics in offices.
  • Increased scope 3 emissions in 2023 due to increased activity and improved data accuracy.
Mitigation Strategies
  • Monitoring and managing the impact of increased activity on scope 1 & 2 emissions in line with the 40% reduction target by 2030.
  • Increased focus on single-use plastics in 2024 to accelerate progress.
  • Continued efforts to improve data accuracy and address scope 3 emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Abnormal temperatures and weather impacting project execution.
Transition Risks
  • Market and reputational impacts of undertaking high-carbon projects.
  • Failure to keep pace with client demands in energy transition.
  • Failure to meet carbon targets.
  • Lack of credible climate transition plan.
  • Investor and lender exclusion policies for high-carbon activities.
Opportunities
  • Increased client scope for energy transition and decarbonisation services.
  • Increased access to capital and/or improved cost of capital.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14064-3

Third-party Assurance: Independent third party

UN Sustainable Development Goals

  • Not disclosed

Aligned with UN Sustainable Development Goals.

Sustainable Products & Innovation

  • Solutions related to renewable energy, hydrogen, carbon capture & storage, electrification, sustainable fuels, recycling, and decarbonisation in various sectors.

Awards & Recognition

  • Not disclosed